#1 - JANUARY 2024
Do what you say and say what you do
ESG, the rule of three: a brief overview of inspiring practices
The sustainable company transforms its intentions into a wide range of more or less original practices. While Governance practices are relatively similar across various groups, practices concerning the Social and Environmental aspects highlight each company’s specific appropriation of sustainable development goals. Even more than sticking to its values, each group aims to embody them in its practices.
They set themselves intermediate goals in the short or medium term. They aim for 2024, 2025, or 2030 at a pinch. But 2050 is already too far ahead. Action must be visible, in the near future, so that they donât seem to be putting off the emergency until tomorrow. Action needs to be here and now. And the reports published on corporate websites speak for themselves. Schneider Electric’s latest integrated report devotes 37% (220 of its 584 pages) to sustainable development. Chapter 1: âGroup strategy and sustainable development”. Chapter 2: âSustainable developmentâ The rest belongs to what follows.
Firms are looking to take account of their environment beyond their own sphere. Practices highlight the need for mutual support and collaboration with their stakeholders. The bank ABN AMRO takes responsibility for its partnersâ impact on biodiversity. It means thinking as a system, not in isolation.
Of course, businesses want to prove the viability of their actions to their partners, through awards obtained from ESG rating agencies (Moody’s, Dow Jones Sustainability Indices, etc.), and to their customers, sometimes by creating their own index (like Leroy Merlin’s âHome Indexâ or Schneiderâs Sustainability Impact). But the rationality of these emerging practices is also emphasised: âSustainability is about doing good, but it also makes good business sense,â says Schneider Electric’s 2022 Integrated Report, which highlights one figure: 72% revenue impact. âOur business model delivers solid, stable, sustainable financial performance, offering attractive returns to our financial partners.â
So we have selected a few of these inspiring practices to provide an overview â though a far from exhaustive one â of what is really happening in sustainable companies. To quote Caroline Riffaud, Head of Environment at CGI Western and Southern Europe: âby the time we get to sorting the emails, everything else will already be in placeâŠâ
The inspiring
practices of
E
Setting up a circular economy with partners to recycle certain used materials.
âNot only do they stop throwing things away, they also create financial valueâ
Audrey Pineau, CGI Business Consulting
Launching a circular economy section in a test shop
Leroy Merlin
Deploying regenerative practices, agroforestry, soil cover, hedge and tree planting, and more
âI like the word âregenerateâ: it goes further than just limiting our environmental impact.â
Sandrine Sommer, Moët-Hennessy
Setting up test shops
âOur Polish teams set up a free water fountain next to the drinks section. They saw no impact on the sales of bottles or cans because it attracted a different audience.â
Arnaud Rolland, LagardĂšre Travel Retail
Introducing a technology to measure the carbon emissions of each plant
âWe have 200 plants worldwide and 120 distribution centres. Over the last few years, we have put all our technology into these factories and centres, and we can now measure the carbon impact of each site. When we say a factory emits zero carbon, it’s because we’ve measured it, because we have proofâ
Schneider Electric
Renovating rather than constructing buildings
âRenovation has less impact than construction.â
Victor Genin, Accor
Creating an eco-responsible index to rate products according to their impact, and commercial promotion of the best-rated products.
âWe have launched a social and environmental ‘Home Index’ notice giving our products a score based on environmental and social criteria. A grade from A to E is awarded, enabling our customers to make informed choices and our sales staff to promote A and B products.â
Agathe Ruckebush, Leroy Merlin
Estimate in euros of the impact generated on biodiversity by ABN AMRO’s lending and asset management activities (impact generated by its customers through loans from the bank)
âThrough our lending and asset management activities, we provide capital to help businesses grow. In doing so, however, they consume additional natural resources and exert greater pressure on biodiversity.â
2022 Impact Report, ABN AMRO
The inspiring
practices of
S
Carrying out diagnostics in partnership with Agefip to help companies measure their level of social inclusion
CGI
Deploying the Climate Fresco
Enedis
Promoting responsible consumption.
âWe’re selling the art of tasting. Our products are precious, so we want them to be consumed in moderation and appreciated for their quality. Within the company, we train our staff to be truly effective ambassadors. Outside the company, we get our message across.â
Sandrine Sommer, Moët-Hennessy
Training future talent
âWe have partnerships with a number of schools, because it’s essential to get close to students and build links with them. They challenge us, they come up with different answers to our case studies, and we pass on our experience of how things really are in the field”
Sandrine Sommer, Moët-Hennessy
Promoting gender diversity
âJean-Pascal Tricoire has taken some radical decisions. Our commitment today is that 50% of new entry-level employees must be women. 40% of middle management staff must be women. And a minimum of 30% in top leadership.â
Rafael Segrera, Schneider Electric
Skills sponsorship
âFor example, we have developed an online app for one of our partner associations. Our CGI recruitment teams also carry out mock interviews for people who are retraining or looking for internships, work-study programmes or jobs. Our employees take time out between assignments to help charities. This is also part of our business plan.â
Amélie AuquiÚre, CGI
Commitments regarding the provenance of food products sold
LagardĂšre Travel Retail
Encouraging employees to express themselves freely
Schneider Electric
Promoting ethnic diversity
âThe heads of the group’s major geographical areas are local people. In the old days, all the big bosses were French, male and white. It was just a fact of life. Today, you have women, local people, different ethnic origins. And that’s one of Schneider’s greatest strengths. Today, we see ourselves as the most local of global firms and the most global of local firms. And why is this? Chiefly for our customers: they want us to speak to them in their own language. Otherwise, it’s more difficult.â
Rafael Segrera, Schneider Electric
Virtually customised employee training
âWhen we define the carbon trajectory, we do it with those who actually deal with carbon, particularly product managers and the people in Quality. We took our product categories, the ones that accounted for over 50% of our emissions, and carried out virtually customised training, with interviews and workshops. When they talk to suppliers, they present a different argument.â
Leroy Merlin
Roll-out of the Axa Climate School (e-learning course)
Leroy Merlin
Internal competition between stores to generate ESG actions
âA positive competition where each store knows what it can do and earns points.â
Leroy Merlin
The inspiring
practices of
G
Strengthening relations with political bodies (government, EU, etc.) for a better grasp of regulations
âWe have someone in front of every mayor and members of parliament, especially MEPs. We have a whole department to manage relations with the EU.â
Emmanuelle Broustet, Enedis
Adoption of mission-led company status
âIt won’t be a revolution for us, but a continuation of what we already areâ
Emmanuelle Broustet, Enedis
Variable executive pay indexed to the company’s non-financial performance
Accor
Feminising management committees
Accor
Management training
âIn the finance sector, supervisory authorities like the European Central Bank (ECB) are testing new board members on their knowledge of ESG. That’s marvellous! Well, the exam isn’t very difficult, but the fact that the ECB is doing it is already a very good sign.â
Tjeerd Krumpelman
ABN AMRO, ECB (European Central Bank)
Internal mobility of executives
Leroy Merlin
Gender parity on the Board of Directors
Schneider Electric
Executive pay indexed to long-term results.
Schneider Electric
Working with other companies in think tanks to standardise practices
âWe are trying to work in think tanks with the big players in the French market, whatever their sector, so that we can all align with best practices.â
Audrey Pineau, CGI Business Consulting